Glasgow-based iomart Group is targeting hybrid cloud profits and glory with the acquisition of the entire issued share capital of Concepta Capital.
According to cloud computing company iomart, Leeds-based ORIIUM is a channel only IT service provider specialising in data management solutions, and Sheffield-headquartered Pavilion IT is a provider of cloud and hybrid infrastructure solutions and support services.
Reece Donovan, CEO of iomart, says the deal is “a meaningful step as we position the group for its next phase of growth as a leading secure hybrid cloud business”.
It seems jobs might be safe as Chris Kiaie, CEO of Concepta, adds: “The team and I are all incredibly excited to be working as part of the wider group and look forward to being part of iomart’s incredible ongoing success.”
Kiaie who established the ORIIUM business and formed the Concepta Group will continue to lead the ORIIUM and Pavilion IT businesses as their CEO.
ORIIUM, established in 2007, works with value added resellers and managed service providers. iomart reckons the firm will boost indirect sales channel capabilities, while extending its product and technical skills and capabilities, with an additional 45 technical engineers joining the group.
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Concepta acquired Pavilion IT, a business established for over 30 years, in 2018, and in 2021 acquired P2 Technologies, a business focused on the legal and accounting professional services sector. This created a direct sales organisation with over 250 customers under one operational delivery team offering hybrid and cloud infrastructure technology solutions plus professional services.
ORIIUM has some notable clients – such as the NHS, University College London and Prudential. Pavilion IT works with small businesses in sectors such as legal, manufacturing and retail
Concepta had revenues of c. £10 million and EBITDA (pre-exceptional items) of c. £1.6 million for the year ended 31 March 2022.
The maximum consideration payable for Concepta is £14.5 million. iomart will pay an initial cash consideration on completion of £10.5 million, subject to potential completion accounts adjustments.
In addition, a deferred contingent cash consideration of up to £4 million will be payable dependent on the future profit performance of the Concepta business in the year ending 30 June 2023. Concepta currently has bank debt of £1.5 million, which will be taken on by iomart and settled as part of the completion process.
iomart should be able to handle that debt as its financial results for the year ended 31 March 2022 were good. The Scottish tech firm had revenue of £103 million, adjusted EBITDA of £38 million and adjusted profit before tax of £17.1 million.
Case studies on iomart’s website include the British Red Cross and Truck-lite.